Agents in Economic Markets and Games

• Published in: X-Machines for Agent-Based Modeling Vol. 1; pp. 121 - 174
• Main Author: Kiran, Mariam
• Format: Book Chapter
• Language: English
• Published: United Kingdom CRC Press 2017; CRC Press LLC
• Edition: 1
• Subjects: Automatic control engineering; Computer science; Electronics engineering; Average Income; Roulette Wheel Selection Mechanism; Nash Equilibrium; Ess; Agent Based Modeling; MPI Library; Cournot Model; Simulation Program Generator; Reaction Curves; Favorite Shop; Artificial Society; Duopoly Market; Cellular Automata; Evolutionary Game Theory; Learning Window; Firm Agent; Iterated Prisoner’s Dilemma Game; Competition Model; Prisoner’s Dilemma Game; Mixed Strategy Games; Multi-agent Systems; Cheap Shops; Monomorium Pharaonis; PD Game
• ISBN: 1498723853; 9781498723855
• DOI: 10.1201/9781315370729-6

Economics, similar to social science, also uses mathematical concepts to help analyze and predict behavior of its systems. Game theory and economics, however, work hand-in-hand to help study people behavior and introduce concepts of payoff and utility when studying economics systems in research. Economic agent-based modeling is a separate research area used to explain the inner workings of economics. Tesfatsion defines agent-based computational economics (ACE) as "the computational study of economic processes modeled as dynamic systems of interacting agents. Here 'agent' refers broadly to a bundle of data and behavioral methods representing an entity constituting part of a computationally constructed world". Multi-agent systems are essentially players involved in a non-cooperative game scenario. There are two research streams intp which similar agent games can be divided: competitive equilibrium theory and computational mechanism design. In multi-agent systems, the two research streams have to be combined into one, because agents are not only responding to environment conditions but other agents in the system.